Ola Electric Mobility Limited IPO And Its GMP IPO Details
| Detail | Description |
|---|---|
| IPO Date | August 2, 2024 to August 6, 2024 |
| Listing Date | Tentative listing date fixed as Friday, August 9, 2024 |
| Face Value | ₹ 10 per share |
| Price Band | ₹ 72 to ₹ 76 per share |
| Lot Size | 195 Shares |
| Total Issue Size | 80,86,26,207 shares (aggregating up to ₹ 6,145.56 Cr) |
| Fresh Issue | 72,36,84,210 shares (aggregating up to ₹ 5,500.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE, BSE |
| Shareholding pre issue | 3,68,70,72,258 |
| Shareholding post issue | 4,41,07,56,468 |
About Ola Electric Mobility Limited IPO And Its GMP
Ola Electric started in 2017 and based in Bengaluru, is an Indian company that makes electric scooters. Initially part of the Ola Cabs family, it became a separate company in 2018-19. Ola Electric focuses on producing electric vehicles (EVs) and their key components, such as battery packs and motors. Their main factory in Krishnagiri, Tamil Nadu, is the largest in India for making electric two-wheelers. They use a direct-to-customer approach with a network of 935 stores where people can see and buy their scooters, plus 414 service centers to help with maintenance and repairs.
Ola Electric's main product is the Ola S1 scooter, which comes in four versions: Ola S1 Air, Ola S1X, Ola S1, and S1 Pro. They are up against established motorcycle brands like Hero MotoCorp, Bajaj Auto, and TVS Motors, as well as newer companies like Ather Energy and Hero Electric in the electric scooter market. The OLA Electric IPO is a book-built offering valued at ₹6,145.56 crore. This includes a fresh issue of 72.37 crore shares totalling ₹5,500.00 crore and an offer for sale of 8.49 crore shares amounting to ₹645.56 crore. The IPO will be open for subscription from August 2, 2024, to August 6, 2024. Allotments are expected to be finalized on August 7, 2024, with shares anticipated to be listed on the BSE and NSE on August 9, 2024. The OLA Electric IPO price range is between ₹72 and ₹76 per share. Kotak Mahindra Capital Company Limited, Bofa Securities India Limited, Axis Capital Limited, and SBI Capital Markets Limited are the book-running lead managers for the IPO, while Link Intime India Private Ltd will serve as the registrar.
Ola Electric Mobility Limited IPO Reservation
| Investor Category | Shares Offered |
|---|---|
| QIB Shares Offered | Not less than 75% of the Net Issue |
| Retail Shares Offered | Not more than 10% of the Net Issue |
| NII (HNI) Shares Offered | Not more than 15% of the Net Issue |
Company & Financials
Ola Electric started in 2017 and based in Bengaluru, is a leading maker of electric scooters. Originally part of the Ola Cabs company, it became its own business in 2018-19. Ola Electric designs and builds its electric scooter parts, like batteries and motors, at its big factory in Krishnagiri, Tamil Nadu. The company has a huge network in India with 935 stores where you can check out their scooters and 414 service centers for maintenance. They offer several models of their e-scooter, including the Ola S1 Air, Ola S1X, Ola S1, and S1 Pro. Ola Electric competes with well-known names like Hero MotoCorp, Bajaj Auto, and TVS Motors, as well as newer brands like Ather Energy and Hero Electric.
Objectives of Ola Electric Mobility Limited IPO
According to a report, Ola Electric earned the most money from electric scooters among Indian manufacturers in the fiscal year 2023. Just nine months after they started selling their first scooter in December 2021, Ola became the top-selling electric scooter brand in India, based on monthly registrations.
Ola Electric's business model is built on three main areas:
- 1. Research & Development (R&D) and Technology: They handle the design and development of electric vehicle (EV) technologies and parts, meaning they create and refine their tech in-house.
- 2. Flexible Production and Supply Chain: They have a production system and supply chain that can adjust and scale as needed to meet demand.
- 3. Direct-to-consumer (D2C) Sales: They sell their products through their network of stores and online channels, giving them control over the customer experience.
As of March 31, 2024, Ola Electric employs 959 people, including 907 permanent staff and 52 freelancers. These employees are focused on various aspects of their products, including research, vehicle and software development, design, and battery cell creation.
Ola Electric Mobility Limited IPO Review
Strengths
- 1. Market Leadership: Ola Electric is a top player in India's fast-growing electric two-wheeler (E2W) market, capturing around 31% of E2W registrations in the first half of 2023. With E2W adoption expected to rise from 4.5% in 2023 to between 41-56% by 2028, the company is well-positioned for growth.
- 2. Government Support: Ola Electric benefits from two key Indian government programs—the Automobile PLI Scheme and the Cell PLI Scheme. These schemes provide financial incentives for manufacturing advanced batteries and EV scooters, which helps reduce costs.
- 3. Direct-to-Consumer Sales Model: The company’s D2C approach, which uses digital channels for sales, allows for cost savings, direct interaction with customers, and better inventory management. This model supports precise demand forecasting and customized production plans.
Risks
- 1. Dependence on Government Incentives: Ola Electric’s reliance on government incentives, like the FAME subsidy and various PLI schemes, poses a risk. If these incentives are reduced or eliminated, the cost of purchasing EVs could rise, potentially affecting customer demand.
- 2. Supply and Demand Challenges: Predicting supply and demand for EVs can be tricky. Inaccurate forecasts might lead to shortages or surplus inventory, causing issues with manufacturing and resulting in extra costs and production delays. Low demand or underutilized factory capacity could also limit the company’s ability to achieve cost efficiencies.
- 3. Strong Competition: Ola Electric faces stiff competition in a rapidly changing automotive market. Advances in alternative technologies for internal combustion engines (ICE) like advanced diesel, hydrogen, ethanol, fuel cells, or compressed natural gas could impact their business. Improvements in ICE vehicle fuel economy or other features might also pose a threat to their market position.
Ola Electric Mobility Limited IPO And Its GMP Financial Information
Latest Revenue
5,243.27
₹ Crore
Profit After Tax
-1,584.40
₹ Crore
Net Worth
2,019.34
₹ Crore
Total Borrowing
2,389.21
₹ Crore
| Period Ended | Assets | Revenue From Operations | Profit After Tax | Net Worth | Total Borrowing | ||||
|---|---|---|---|---|---|---|---|---|---|
| 31 Mar 2024 | 7,735.41 | 5,243.27 | -1,584.40 | 2,019.34 | 2,389.21 | ||||
| 31 Mar 2023 | 5,573.17 | 2,782.70 | -1,472.08 | 2,356.44 | 1,645.75 | ||||
| 31 Mar 2022 | 5,395.86 | 456.26 | -784.15 | 3,661.45 | 750.41 | ||||
| Amount in ₹ Crore | |||||||||
IPO Estimated Listing Return
Based on the IPO Price of ₹76 (highest price band), the latest uploaded Grey Market Premium (GMP) of ₹-3 and a lot size of 195 shares.
Ola Electric Mobility Limited IPO And Its GMP GMP TREND (DAILY UPDATES)
| GMP Date | IPO Price | GMP | Last Updated |
|---|---|---|---|
| 2024-08-09 | ₹76.00 | ₹-3.0 (-4%) | 2024-08-09 |
Ola Electric Mobility Limited IPO And Its GMP Key Performance Indicator
| KPI | Values |
|---|---|
| RoNW | -78.46% |
| P/BV | 13.72 |
| Pre IPO | Post IPO | |
|---|---|---|
| EPS (Rs) | -4.3 | -3.59 |
| P/E (x) | -17.69 | -21.16 |
Frequently Asked Questions
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Competitive Strengths
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Ola Electric Mobility Limited IPO And Its GMP IPO Timeline
| IPO Open Date | Friday, August 2, 2024 |
| IPO Close Date | Tuesday, August 6, 2024 |
| Basis of Allotment | Wednesday, August 7, 2024 |
| Initiation of Refunds | Thursday, August 8, 2024 |
| Credit of Shares to Demat | Thursday, August 8, 2024 |
| Listing Date | Friday, August 9, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 6, 2024 |
IPO Lot Size
| Investors | No.of lots | Shares Offered | Max Bid Amount |
|---|---|---|---|
| Retail (Min) | 1 | 195 | ₹14,820 |
| Retail (Max) | 13 | 2535 | ₹192,660 |
| S-HNI (Min) | 14 | 2,730 | ₹207,480 |
| S-HNI (Max) | 67 | 13,065 | ₹992,940 |
| B-HNI (Min) | 68 | 13,260 | ₹1,007,760 |